Peru’s central bank has kept its benchmark interest rate unchanged at 4.25%, extending its pause for a 13th consecutive month as inflation continues to remain above the institution’s target range.

The Central Reserve Bank of Peru said annual inflation increased from 4.1% in July to 4.4% in August 2026. The rise was attributed largely to a base effect linked to negative monthly inflation recorded in August last year.

Core inflation, which excludes food and energy prices, eased slightly from 4.6% to 4.5% during the same period. The central bank nevertheless maintained its cautious approach toward monetary policy.

The decision comes as Peru’s economy continues to show relatively strong activity. Policymakers are balancing economic growth against persistent inflationary pressures while monitoring international developments that could affect prices and financial markets.

Peru is also strengthening its international economic and security partnerships. During U.S. Secretary of State Marco Rubio’s recent visit, President Keiko Fujimori announced that Peru would join the U.S.-led “Shield of the Americas” anti-drug coalition.

The latest interest-rate decision indicates that Peruvian policymakers are not yet ready to resume monetary easing, preferring to watch inflation and economic conditions closely before making another move.